2 Stocks, 2 Decades, $200. Is This the Long-Term Dividend Play for Your Portfolio?
Investing in excellent dividend stocks can be a great strategy to mitigate risk and boost long-term returns. Companies that can dispense regular payouts to their shareholders -- especially those that have done so for a long time -- generally have stable and steadily growing businesses that can perform relatively well even amid downturns. And opting to reinvest the dividend will significantly boost long-term returns.However, there's a long list of dividend stocks on equity markets. Which ones should investors on a $200 budget buy? Let's consider two options: Coca-Cola (NYSE: KO) and Abbott Laboratories (NYSE: ABT).Coca-Cola is one of those companies that needs no introduction. Its brand is well-known and recognizable in practically every country. It markets some of the world's most iconic soft drinks. As an investment, Coca-Cola has delivered excellent returns to its long-term shareholders. Of course, that's no guarantee of future success, but the business has several things going its way that could lend themselves to more market-beating performances over the next two decades (and beyond). The Coke brand name provides it with a strong competitive advantage.Continue reading
Investing in excellent dividend stocks can be a great strategy to mitigate risk and boost long-term returns. Companies that can dispense regular payouts to their shareholders -- especially those that have done so for a long time -- generally have stable and steadily growing businesses that can perform relatively well even amid downturns. And opting to reinvest the dividend will significantly boost long-term returns.
However, there's a long list of dividend stocks on equity markets. Which ones should investors on a $200 budget buy? Let's consider two options: Coca-Cola (NYSE: KO) and Abbott Laboratories (NYSE: ABT).
Coca-Cola is one of those companies that needs no introduction. Its brand is well-known and recognizable in practically every country. It markets some of the world's most iconic soft drinks. As an investment, Coca-Cola has delivered excellent returns to its long-term shareholders. Of course, that's no guarantee of future success, but the business has several things going its way that could lend themselves to more market-beating performances over the next two decades (and beyond). The Coke brand name provides it with a strong competitive advantage.
